Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | CROWN CRAFTS INC | |
Entity Central Index Key | 0000025895 | |
Trading Symbol | crws | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 10,119,355 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Mar. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 3,467,000 | $ 143,000 |
Accounts receivable (net of allowances of $541 at June 30, 2019 and $407 at March 31, 2019): | ||
Due from factor | 11,393,000 | 17,250,000 |
Other | 1,078,000 | 522,000 |
Inventories | 20,449,000 | 19,534,000 |
Prepaid expenses | 1,136,000 | 1,230,000 |
Total current assets | 37,523,000 | 38,679,000 |
Operating lease right of use assets | 1,600,000 | |
Property, plant and equipment - at cost: | ||
Vehicles | 323,000 | 323,000 |
Leasehold improvements | 282,000 | 282,000 |
Machinery and equipment | 4,348,000 | 4,269,000 |
Furniture and fixtures | 799,000 | 799,000 |
Property, plant and equipment - gross | 5,752,000 | 5,673,000 |
Less accumulated depreciation | 3,930,000 | 3,751,000 |
Property, plant and equipment - net | 1,822,000 | 1,922,000 |
Finite-lived intangible assets - at cost: | ||
Tradename and trademarks | 3,667,000 | 3,667,000 |
Customer relationships | 7,374,000 | 7,374,000 |
Other finite-lived intangible assets | 3,159,000 | 3,159,000 |
Finite-lived intangible assets gross | 14,200,000 | 14,200,000 |
Less accumulated amortization | 7,982,000 | 7,768,000 |
Finite-lived intangible assets - net | 6,218,000 | 6,432,000 |
Goodwill | 7,125,000 | 7,125,000 |
Deferred income taxes | 612,000 | 524,000 |
Other | 95,000 | 97,000 |
Total Assets | 54,995,000 | 54,779,000 |
Current liabilities: | ||
Accounts payable | 6,688,000 | 4,201,000 |
Accrued wages and benefits | 2,228,000 | 1,819,000 |
Accrued royalties | 317,000 | 398,000 |
Dividends payable | 810,000 | 810,000 |
Operating lease liabilities, current | 933,000 | |
Other accrued liabilities | 646,000 | 483,000 |
Total current liabilities | 11,622,000 | 7,711,000 |
Non-current liabilities: | ||
Long-term debt | 4,486,000 | |
Operating lease liabilities, noncurrent | 747,000 | |
Reserve for unrecognized tax liabilities | 921,000 | 1,194,000 |
Total non-current liabilities | 1,668,000 | 5,680,000 |
Shareholders' equity: | ||
Common stock - $0.01 par value per share; Authorized 40,000,000 shares at June 30, 2019 and March 31, 2019; Issued 12,546,789 shares at June 30, 2019 and March 31, 2019 | 125,000 | 125,000 |
Additional paid-in capital | 53,316,000 | 53,251,000 |
Treasury stock - at cost - 2,427,434 shares at June 30, 2019 and 2,424,231 shares at March 31, 2019 | (12,343,000) | (12,326,000) |
Retained Earnings | 607,000 | 338,000 |
Total shareholders' equity | 41,705,000 | 41,388,000 |
Total Liabilities and Shareholders' Equity | $ 54,995,000 | $ 54,779,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Allowance for doubtful accounts receivable | $ 541 | $ 407 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,546,789 | 12,546,789 |
Treasury stock, shares (in shares) | 2,427,434 | 2,424,231 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Net sales | $ 15,942 | $ 15,460 |
Cost of products sold | 11,391 | 11,332 |
Gross profit | 4,551 | 4,128 |
Marketing and administrative expenses | 3,452 | 3,685 |
Income from operations | 1,099 | 443 |
Other income (expense): | ||
Interest income (expense) - net | 29 | (99) |
Other - net | 8 | |
Income before income tax expense | 1,136 | 344 |
Income tax expense | 57 | 80 |
Net income | $ 1,079 | $ 264 |
Weighted average shares outstanding: | ||
Basic (in shares) | 10,119 | 10,070 |
Effect of dilutive securities (in shares) | 2 | |
Diluted (in shares) | 10,119 | 10,072 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.11 | $ 0.03 |
Diluted (in dollars per share) | $ 0.11 | $ 0.03 |
Unaudited Condensed Consolida_2
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balances (in shares) at Apr. 01, 2018 | 12,493,789 | (2,408,025) | |||
Balances at Apr. 01, 2018 | $ 125 | $ (12,231) | $ 52,874 | $ (1,450) | $ 39,318 |
Stock-based compensation | 110 | 110 | |||
Acquisition of treasury stock (in shares) | (16,206) | ||||
Acquisition of treasury stock | $ (95) | (95) | |||
Net income | 264 | 264 | |||
Dividends declared on common stock | (806) | (806) | |||
Balances (in shares) at Jul. 01, 2018 | 12,493,789 | (2,424,231) | |||
Balances at Jul. 01, 2018 | $ 125 | $ (12,326) | 52,984 | (1,992) | 38,791 |
Balances (in shares) at Mar. 31, 2019 | 12,546,789 | (2,424,231) | |||
Balances at Mar. 31, 2019 | $ 125 | $ (12,326) | 53,251 | 338 | 41,388 |
Stock-based compensation | 65 | 65 | |||
Acquisition of treasury stock (in shares) | (3,203) | ||||
Acquisition of treasury stock | $ (17) | (17) | |||
Net income | 1,079 | 1,079 | |||
Dividends declared on common stock | (810) | (810) | |||
Balances (in shares) at Jun. 30, 2019 | 12,546,789 | (2,427,434) | |||
Balances at Jun. 30, 2019 | $ 125 | $ (12,343) | $ 53,316 | $ 607 | $ 41,705 |
Unaudited Condensed Consolida_3
Unaudited Condensed Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Retained Earnings [Member] | ||
Dividends declared, per share (in dollars per share) | $ 0.08 | $ 0.08 |
Unaudited Condensed Consolida_4
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Operating activities: | ||
Net income | $ 1,079 | $ 264 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 179 | 138 |
Amortization of intangibles | 214 | 200 |
Amortization of right of use assets | 333 | |
Deferred income taxes | (88) | 20 |
Reserve for unrecognized tax liabilities | (273) | 28 |
Stock-based compensation | 65 | 110 |
Changes in assets and liabilities: | ||
Accounts receivable | 5,301 | 3,937 |
Inventories | (915) | (971) |
Prepaid expenses | 94 | (11) |
Other assets | 2 | |
Lease liabilities | (352) | |
Accounts payable | 2,463 | 3,301 |
Accrued liabilities | 590 | (410) |
Net cash provided by operating activities | 8,692 | 6,606 |
Investing activities: | ||
Capital expenditures for property, plant and equipment | (55) | (102) |
Financing activities: | ||
Repayments under revolving line of credit | (13,575) | (16,778) |
Borrowings under revolving line of credit | 9,089 | 11,160 |
Purchase of treasury stock | (17) | (95) |
Dividends paid | (810) | (807) |
Net cash used in financing activities | (5,313) | (6,520) |
Net increase (decrease) in cash and cash equivalents | 3,324 | (16) |
Cash and cash equivalents at beginning of period | 143 | 215 |
Cash and cash equivalents at end of period | 3,467 | 199 |
Supplemental cash flow information: | ||
Income taxes paid | 3 | 3 |
Interest paid | 28 | 75 |
Noncash financing activities: | ||
Property, plant and equipment purchased but unpaid | 24 | |
Dividends declared but unpaid | $ (810) | $ (806) |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 1 Basis of Presentation : The accompanying unaudited consolidated financial statements include the accounts of Crown Crafts, Inc. (the “Company”) and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) applicable to interim financial information as promulgated by the Financial Accounting Standards Board (“FASB”). Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. References herein to GAAP are to topics within the FASB Accounting Standards Codification (the “FASB ASC”), which has been established by the FASB as the authoritative source for GAAP to be applied by nongovernmental entities. In the opinion of management, the interim unaudited consolidated financial statements contained herein include all adjustments necessary to present fairly the financial position of the Company as of June 30, 2019 and the results of its operations and cash flows for the period presented. Such adjustments include normal, recurring accruals, as well as the elimination of all significant intercompany balances and transactions. Operating results for the three -month period ended June 30, 2019 are not necessarily indicative of the results that may be expected by the Company for its fiscal year ending March 29, 2020. For further information, refer to the Company’s consolidated financial statements and notes thereto included in the Company’s annual report on Form 10 -K for the fiscal year ended March 31, 2019. Fiscal Year: The Company’s fiscal year ends on the Sunday that is nearest to or on March 31. References herein to “fiscal year 2020” or “2020” represent the 52 -week period ending March 29, 2020 and references herein to “fiscal year 2019” or “2019” represent the 52 -week period ended March 31, 2019. Reclassifications: The Company has classified certain prior year information to conform to the amounts presented in the current year. None of the changes impact the Company’s previously reported financial position or results of operations. Use of Estimates : The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the condensed consolidated balance sheets and the reported amounts of revenues and expenses during the periods presented on the unaudited consolidated statements of income and cash flows. Significant estimates are made with respect to the allowances related to accounts receivable for customer deductions for returns, allowances and disputes. The Company also has a certain amount of discontinued finished goods which necessitates the establishment of inventory reserves that are highly subjective. The Company has also established estimated reserves in connection with the uncertainty concerning the amount of income tax recognized. Actual results could differ materially from those estimates. Cash and Cash Equivalents: The Company considers highly-liquid investments, if any, purchased with original maturities of three months or less to be cash equivalents. The Company’s credit facility consists of a revolving line of credit under a financing agreement with The CIT Group/Commercial Services, Inc. (“CIT”), a subsidiary of CIT Group Inc. The Company classifies a negative balance outstanding under this revolving line of credit as cash, as these amounts are legally owed to the Company and are immediately available to be drawn upon by the Company. There are no compensating balance requirements or other restrictions on the transfer of amounts associated with the Company’s depository accounts. Financial Instruments : For short-term instruments such as cash and cash equivalents, accounts receivable and accounts payable, the Company uses carrying value as a reasonable estimate of the fair value. Advertising Cost s : The Company’s advertising costs are primarily associated with cooperative advertising arrangements with certain of the Company’s customers and are recognized using the straight-line method based upon aggregate annual estimated amounts for those customers, with periodic adjustments to the actual amounts of authorized agreements. Costs associated with advertising on websites such as Facebook and Google and which are related to the Company’s online business are recorded as incurred. Advertising expense is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income and amounted to $284,000 and $325,000 for the three -month periods ended June 30, 2019 and July 1, 2018, respectively. Revenue Recognition: Revenue is recognized upon the satisfaction of all contractual performance obligations and the transfer of control of the products sold to the customer. The majority of the Company’s sales consists of single performance obligation arrangements for which the transaction price for a given product sold is equivalent to the price quoted for the product, net of any stated discounts applicable at a point in time. Each sales transaction results in an implicit contract with the customer to deliver a product as directed by the customer. Shipping and handling costs that are charged to customers are included in net sales, and the Company’s costs associated with shipping and handling activities are included in cost of products sold. A provision for anticipated returns, which are based upon historical returns and claims, is provided through a reduction of net sales and cost of products sold in the reporting period within which the related sales are recorded. Actual returns and claims experienced in a future period may differ from historical experience, and thus, the Company’s provision for anticipated returns at any given point in time may be over-funded or under-funded. The Company recognizes revenue associated with unredeemed store credits and gift certificates at the earlier of their redemption by customers, their expiration or when their likelihood of redemption becomes remote, which is generally two years from the date of issuance. Revenue from sales made directly to consumers is recorded when the shipped products have been received by customers, and excludes sales taxes collected on behalf of governmental entities. Revenue from sales made to retailers is recorded when legal title has been passed to the customer based upon the terms of the customer’s purchase order, the Company’s sales invoice, or other associated relevant documents. Such terms usually stipulate that legal title will pass when the shipped products are no longer under the control of the Company, such as when the products are picked up at the Company’s facility by the customer or by a common carrier. Payment terms can vary from prepayment for sales made directly to consumers and some international sales to payment due in arrears (generally, 60 days of being invoiced) for sales made to retailers. A disaggregation of the Company’s revenue is set forth below under the heading “ Segment and Related Information ” in this Note 1. Allowances Against Accounts Receivable: Revenue from sales made to retailers is reported net of allowances for anticipated returns and other allowances, including cooperative advertising allowances, warehouse allowances, placement fees, volume rebates, coupons and discounts. Such allowances are recorded commensurate with sales activity or applying the straight-line method, as appropriate, and the cost of such allowances is netted against sales in reporting the results of operations. The provision for the majority of the Company’s allowances occurs on a per-invoice basis. When a customer requests to have an agreed-upon deduction applied against the customer’s outstanding balance due to the Company, the allowances are correspondingly reduced to reflect such payments or credits issued against the customer’s account balance. The Company analyzes the components of the allowances for customer deductions monthly and adjusts the allowances to the appropriate levels. The timing of funding requests for advertising support can cause the net balance in the allowance account to fluctuate from period to period. The timing of such funding requests should have no impact on the consolidated statements of income since such costs are accrued commensurate with sales activity or using the straight-line method, as appropriate. Uncollectible Accounts: To reduce the exposure to credit losses and to enhance the predictability of its cash flows, the Company assigns the majority of its receivables under factoring agreements with CIT. If a factored receivable becomes uncollectible due to creditworthiness, then CIT bears the risk of loss. The Company recognizes revenue net of the amount that is expected to be uncollectible on any accounts receivable that are not assigned under the factoring agreements with CIT. The Company’s management makes estimates of the uncollectiblity of its non-factored accounts receivable by specifically analyzing the accounts receivable, historical bad debts, customer concentrations, customer creditworthiness, current economic trends and changes in its customers’ payment terms. Credit Concentration: The Company’s accounts receivable as of June 30, 2019 amounted to $12.5 million, net of allowances of $541,000. Of this amount, $11.4 million was due from CIT under the factoring agreements and $3.4 million was due from CIT as a negative balance outstanding under the revolving line of credit. The combined amount of $14.8 million represents the maximum loss that the Company could incur if CIT failed completely to perform under the factoring agreements and the revolving line of credit. Other Accrued Liabilities : An amount of $646,000 was recorded as other accrued liabilities as of June 30, 2019. Of this amount, $180,000 reflected unearned revenue recorded for payments from customers that were received before the products ordered were received by the customers. Other accrued liabilities as of June 30, 2019 also includes a reserve for customer returns of $16,000 and unredeemed store credits and gift certificates totaling $11,000. Segment and Related Information: The Company operates primarily in one principal segment – infant, toddler and juvenile products. These products consist of infant and toddler bedding, bibs, soft bath products, disposable products and accessories. Net sales of bedding, blankets and accessories and net sales of bibs, bath, developmental toy, feeding, baby care and disposable products for the three -month periods ended June 30, 2019 and July 1, 2018 are as follows (in thousands): Three-Month Periods Ended June 30, 2019 July 1, 2018 Bedding, blankets and accessories $ 7,713 $ 8,521 Bibs, bath, developmental toy, feeding, baby care and disposable products 8,229 6,939 Total net sales $ 15,942 $ 15,460 Inventory Valuation: The preparation of the Company's financial statements requires careful determination of the appropriate value of the Company's inventory balances. Such amounts are presented as a current asset in the accompanying condensed consolidated balance sheets and are a direct determinant of cost of products sold in the accompanying unaudited condensed consolidated statements of income and, therefore, have a significant impact on the amount of net income reported in the accounting periods. The basis of accounting for inventories is cost, which includes the direct supplier acquisition cost, duties, taxes and freight, and the indirect costs to design, develop, source and store the product until it is sold. Once cost has been determined, the Company’s inventory is then stated at the lower of cost or net realizable value, with cost determined using the first -in, first -out ("FIFO") method, which assumes that inventory quantities are sold in the order in which they are acquired, and the average cost method for a portion of the Company’s inventory. The determination of the indirect charges and their allocation to the Company's finished goods inventories is complex and requires significant management judgment and estimates. If management made different judgments or utilized different estimates, then differences would result in the valuation of the Company's inventories and in the amount and timing of the Company's cost of products sold and the resulting net income for the reporting period. On a periodic basis, management reviews its inventory quantities on hand for obsolescence, physical deterioration, changes in price levels and the existence of quantities on hand which may not reasonably be expected to be sold within the Company’s normal operating cycle. To the extent that any of these conditions is believed to exist or the market value of the inventory expected to be realized in the ordinary course of business is otherwise no longer as great as its carrying value, an allowance against the inventory value is established. To the extent that this allowance is established or increased during an accounting period, an expense is recorded in cost of products sold in the Company's consolidated statements of income. Only when inventory for which an allowance has been established is later sold, or is otherwise disposed, is the allowance reduced accordingly. Significant management judgment is required in determining the amount and adequacy of this allowance. If actual results differ from management's estimates or these estimates and judgments are revised in future periods, then the Company may not fully realize the carrying value of its inventory or may need to establish additional allowances, either of which could materially impact the Company's financial position and results of operations. Royalty Payments: The Company has entered into agreements that provide for royalty payments based on a percentage of sales with certain minimum guaranteed amounts. These royalty amounts are accrued based upon historical sales rates adjusted for current sales trends by customers. Royalty expense is included in cost of products sold in the accompanying unaudited consolidated statements of income and amounted to $881,000 and $974,000 for the three -month periods ended June 30, 2019 and July 1, 2018, respectively. Depreciation and Amortization: The accompanying condensed consolidated balance sheets reflect property, plant and equipment, and certain intangible assets at cost less accumulated depreciation or amortization. The Company capitalizes additions and improvements and expenses maintenance and repairs as incurred. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets, which are three to eight years for property, plant and equipment, and five to twenty years for intangible assets other than goodwill. The Company amortizes improvements to its leased facilities over the term of the lease or the estimated useful life of the asset, whichever is shorter. Valuation of Long-Lived Assets and Identifiable Intangible Assets : In addition to the depreciation and amortization procedures set forth above, the Company reviews for impairment long-lived assets and certain identifiable intangible assets whenever events or changes in circumstances indicate that the carrying amount of any asset may not be recoverable. In the event of impairment, the asset is written down to its fair market value. Patent Costs: The Company incurs certain legal and related costs in connection with patent applications. The Company capitalizes such costs to be amortized over the expected life of the patent to the extent that an economic benefit is anticipated from the resulting patent or an alternative future use is available to the Company. The Company also capitalizes legal and other costs incurred in the protection or defense of the Company’s patents when it is believed that the future economic benefit of the patent will be maintained or increased and a successful defense is probable. Capitalized patent defense costs are amortized over the remaining expected life of the related patent. The Company’s assessment of future economic benefit of its patents involves considerable management judgment, and a different conclusion could result in a material impairment charge up to the carrying value of these assets. Provision for Income Taxes: The Company’s provision for income taxes includes all currently payable federal, state, local and foreign taxes and is based upon the Company’s estimated annual effective tax rate (“ETR”), which is based on the Company’s forecasted annual pre-tax income, as adjusted for certain expenses within the consolidated statements of income that will never be deductible on the Company’s tax returns and certain charges expected to be deducted on the Company’s tax returns that will never be deducted on the consolidated statements of income, multiplied by the statutory tax rates for the various jurisdictions in which the Company operates. The Company’s provisions for income taxes for the three -month periods ended June 30, 2019 and July 1, 2018 are based upon an estimated annual ETR from continuing operations of 24.3% and 24.0%, respectively. The Company provides for deferred income taxes based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates that will be in effect when the differences are expected to reverse. The Company files income tax returns in the many jurisdictions in which it operates, including the U.S., several U.S. states and the People’s Republic of China. The statute of limitations varies by jurisdiction; tax years open to federal or state audit or other adjustment as of June 30, 2019 were the tax years ended March 31, 2019, April 1, 2018, April 2, 2017, April 3, 2016, March 29, 2015 and March 30, 2014. Management evaluates items of income, deductions and credits reported on the Company’s various federal and state income tax returns filed and recognizes the effect of positions taken on those income tax returns only if those positions are more likely than not to be sustained. The Company applies the provisions of FASB ASC Sub-topic 740 - 10 - 25, which requires a minimum recognition threshold that a tax benefit must meet before being recognized in the financial statements. Recognized income tax positions are measured at the largest amount that has a greater than 50% likelihood of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. In evaluating the process regarding the calculation of the state portion of its income tax provision, the Company has taken a tax position that reflects opportunities for more favorable state apportionment percentages, which were applied to several prior fiscal years and to succeeding fiscal years. After considering all relevant information, the Company believes that the technical merits of this tax position would more likely than not be sustained. However, the Company also believes that the ultimate resolution of the tax position will result in a tax benefit that is less than the full amount realized through the application of the more favorable state apportionment percentages. Therefore, the Company’s measurement regarding the tax impact of the revised state apportionment percentages resulted in the Company recording discrete reserves for unrecognized tax liabilities during the three -month periods ended June 30, 2019 and July 1, 2018 of $11,000 and $3,000, respectively, in the accompanying unaudited condensed consolidated statements of income. The Company’s policy is to accrue interest expense and penalties as appropriate on estimated unrecognized tax liabilities as a charge to interest expense in the Company’s consolidated statements of income. During the three -month periods ended June 30, 2019 and July 1, 2018, the Company accrued $26,000 and $25,000, respectively, in the accompanying unaudited condensed consolidated statements of income for interest expense and penalties on the portion of the unrecognized tax liabilities that has been refunded to the Company but for which the relevant statute of limitations remained unexpired. No interest expense or penalties are accrued with respect to estimated unrecognized tax liabilities that are associated with state income tax overpayments that remain receivable. In December 2016, the Company was notified by the Franchise Tax Board of the State of California (the “FTB”) of its intention to examine the Company’s claims for refund made in connection with amended consolidated income tax returns that the Company had filed for the fiscal years ended March 30, 2014, March 31, 2013, April 1, 2012 and April 3, 2011. As outlined above, the Company has recorded discrete reserves for unrecognized tax liabilities for these and succeeding fiscal years, and has also accrued interest expense and penalties associated with these estimated unrecognized tax liabilities. On July 31, 2019, the FTB notified the Company that it would take no further action with regard to the fiscal years ended March 31, 2013, April 1, 2012 and April 3, 2011. Accordingly, the Company reversed the reserves for unrecognized tax liabilities that it had previously recorded for these fiscal years, which resulted in the recognition of a discrete income tax benefit of $232,000 during the three -month period ended June 30, 2019 in the accompanying unaudited condensed consolidated statements of income. The Company also reversed the interest expense and penalties that it had accrued through June 30, 2019 in respect of the estimated unrecognized tax liabilities for these fiscal years, which resulted in the recognition of a credit to interest expense of $78,000 during the three -month period ended June 30, 2019. As of July 31, 2019, the status of the Company’s claim for refund made in connection with the amended consolidated income tax return that the Company filed for the fiscal year ended March 30, 2014 was not resolved. The ultimate resolution of this claim for refund could include administrative or legal proceedings. Although management believes that the calculations and positions taken on the amended consolidated income tax return and all other filed income tax returns are reasonable and justifiable, the outcome of this or any other examination could result in an adjustment to the position that the Company took on such income tax returns. Such adjustment could also lead to adjustments to one or more other state income tax returns, or to income tax returns for subsequent fiscal years, or both. To the extent that the Company’s reserve for unrecognized tax benefits is not adequate to support the cumulative effect of such adjustments, the Company could experience a material adverse impact on its future results of operations. Conversely, to the extent that the calculations and positions taken by the Company on the filed income tax returns under examination are sustained, another reversal of all or a portion of the Company’s reserve for unrecognized tax liabilities could result in a favorable impact on its future results of operations. In connection with the vesting of non-vested stock, the Company recorded a discrete income tax shortfall of $2,000 during the three -month period ended June 30, 2019, and the Company recorded a discrete income tax benefit of $5,000 during the three -month period ended July 1, 2018. The ETR on continuing operations and the discrete income tax charges and benefits set forth above resulted in an overall provision for income taxes of 5.0% and 23.3% for the three -month periods ended June 30, 2019 and July 1, 2018, respectively. E arnings Per Share: The Company calculates basic earnings per share by using a weighted average of the number of shares outstanding during the reporting periods. Diluted shares outstanding are calculated in accordance with the treasury stock method, which assumes that the proceeds from the exercise of all exercisable options would be used to repurchase shares at market value. The net number of shares issued after the exercise proceeds are exhausted represents the potentially dilutive effect of the exercisable options, which are added to basic shares to arrive at diluted shares. Recently-Issued Accounting Standards : In June 2016, the FASB issued ASU No. 2016 - 13, Financial Instruments – Credit Losses (Topic 326 ): Measurement of Credit Losses on Financial Instruments , the objective of which is to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by an entity. Current GAAP requires an “incurred loss” methodology for recognizing credit losses that delays recognition until it is probable that a loss has been incurred. Because this methodology restricted the recognition of credit losses that are expected, but did not yet meet the “probable” threshold, ASU No. 2016 - 13 was issued to require the consideration of a broader range of reasonable and supportable information when determining estimates of credit losses. The ASU will become effective for the first interim period of the fiscal year beginning after December 15, 2019. The ASU is to be applied using a modified retrospective approach, and the ASU may be early-adopted as of the first interim period of the fiscal year beginning after December 15, 2018. The Company intends to adopt ASU No. 2016 - 13 effective as of March 30, 2020. Although the Company has not determined the full impact of the adoption of the ASU, because the Company assigns the majority of its trade accounts receivable under factoring agreements with CIT, the Company does not believe that the adoption of the ASU will have a significant impact on the Company’s financial position, results of operations and related disclosures. The Company has determined that all other ASUs which had become effective as of June 30, 2019, or which will become effective at some future date, are not expected to have a material impact on the Company’s consolidated financial statements. |
Note 2 - Goodwill
Note 2 - Goodwill | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Goodwill Disclosure [Text Block] | Note 2 – Goodwill Goodwill represents the excess of the purchase price over the fair value of net identifiable assets acquired in business combinations. For the purpose of presenting and measuring for the impairment of goodwill, the Company has two one June 30, 2019 March 31, 2019 $30.0 $22.9 $7.1 The Company measures for impairment the goodwill within its reporting units annually as of the first not 50% first not not On April 1, 2019, not |
Note 3 - Other Intangible Asset
Note 3 - Other Intangible Assets | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | Note 3 – Other Intangible Assets Other intangible assets as of June 30, 2019 March 31, 2019 June 30, 2019 March 31, 2019, three June 30, 2019 July 1, 2018 Amortization Expense Gross Amount Accumulated Amortization Three-Month Periods Ended June 30, March 31, June 30, March 31, June 30, July 1, 2019 2019 2019 2019 2019 2018 Tradename and trademarks $ 3,667 $ 3,667 $ 1,562 $ 1,501 $ 61 $ 48 Developed technology 1,100 1,100 211 183 28 27 Non-compete covenants 458 458 220 200 20 20 Patents 1,601 1,601 808 781 27 27 Customer relationships 7,374 7,374 5,181 5,103 78 78 Total other intangible assets $ 14,200 $ 14,200 $ 7,982 $ 7,768 $ 214 $ 200 Classification within the accompanying unaudited condensed consolidated statements of income: Cost of products sold $ 2 $ 2 Marketing and administrative expenses 212 198 Total amortization expense $ 214 $ 200 |
Note 4 - Inventories
Note 4 - Inventories | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4 – Inventories Major classes of inventory were as follows (in thousands): June 30, 2019 March 31, 2019 Raw Materials $ 614 $ 617 Work in Process 35 56 Finished Goods 19,800 18,861 Total inventory $ 20,449 $ 19,534 |
Note 5 - Financing Arrangements
Note 5 - Financing Arrangements | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 5 – Financing Arrangements Factoring Agreement s: may may $51,000 $56,000 three June 30, 2019 July 1, 2018, Credit Facility: June 30, 2019 $26.0 $1.5 0.5% 1.75%. July 11, 2022 first June 30, 2019, 4.18% June 30, 2019. 2.0%, 3.5% June 30, 2019, June 30, 2019, no no $19.2 March 31, 2019, $4.5 no $19.4 The financing agreement contains usual and customary covenants for agreements of that type, including limitations on other indebtedness, liens, transfers of assets, investments and acquisitions, merger or consolidation transactions, transactions with affiliates, and changes in or amendments to the organizational documents for the Company and its subsidiaries. The Company believes it was in compliance with these covenants as of June 30, 2019. |
Note 6 - Leases
Note 6 - Leases | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | N ote 6 – Leases On April 1, 2019, 842, L ease s 842” 842. 12 In its initial application of Topic 842, $1.9 April 1, 2019 $99,000 not 842. The Company is a party to various operating leases for offices, warehousing facilities and certain office equipment. The leases expire at various dates, have varying options to renew and cancel, and may The key estimates for the Company’s leases include: ( 1 2 not Subsequent to the Company’s recognition of operating lease liabilities of $1.9 April 1, 2019, $352,000 three June 30, 2019. three June 30, 2019, Cost of products sold $ 283 Marketing and administrative expenses 29 Total operating lease costs $ 312 The Company’s operating leases have a weighted-average remaining lease term of 17.0 4.59%. The following table represents the maturities of the Company’s operating lease liabilities as of June 30, 2019 ( Fiscal Year 2020 $ 1,086 2021 546 2022 100 2023 10 Total undiscounted operating lease payments 1,742 Imputed interest (61 ) Total operating lease liabilities $ 1,681 The following table represents the Company’s commitment for minimum guaranteed rental payments under its lease agreements as of March 31, 2019 ( Fiscal Year 2020 $ 1,406 2021 497 2022 42 Total $ 1,945 |
Note 7 - Stock-based Compensati
Note 7 - Stock-based Compensation | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | N ote 7 – S tock-based Compensation The Company has two 2006 “2006 2014 “2014 2014 2014 may no 2006 The Company believes that awards of long-term, equity-based incentive compensation will attract and retain directors, officers and employees of the Company and will encourage these individuals to contribute to the successful performance of the Company, which will lead to the achievement of the Company’s overall goal of increasing stockholder value. Awards granted under the 2014 may may may 2014 2014 not ten 10 June 30, 2019, 486,000 2014 may Stock-based compensation is calculated according to FASB ASC Topic 718, Compensation – Stock Compensation three June 30, 2019 July 1, 2018, $65,000 $110,000 No June 30, 2019. Stock Options: three June 30, 2019 July 1, 2018: Three-Month Periods Ended June 30, 2019 July 1, 2018 Weighted- Weighted- Average Number of Average Number of Exercise Options Exercise Options Price Outstanding Price Outstanding Outstanding at Beginning of Period $ 7.45 457,500 $ 7.93 395,000 Granted 4.76 125,000 5.90 110,000 Forfeited 7.07 (55,000 ) - - Outstanding at End of Period 6.85 527,500 7.48 505,000 Exercisable at End of Period 7.72 352,500 8.15 315,000 As of June 30, 2019, no no three June 30, 2019 July 1, 2018. To determine the estimated fair value of stock options granted, the Company uses the Black-Scholes-Merton valuation formula, which is a closed-form model that uses an equation to estimate fair value. The following table sets forth the assumptions used to determine the fair value of the non-qualified stock options that were awarded to certain employees during the three June 30, 2019 July 1, 2018, two Three-Month Periods Ended June 30, 2019 July 1, 2018 Number of options issued 125,000 110,000 Grant date June 13, 2019 June 13, 2018 Dividend yield 6.72 % 5.42 % Expected volatility 25.00 % 25.00 % Risk free interest rate 1.81 % 2.78 % Contractual term (years) 10.00 10.00 Expected term (years) 4.00 4.00 Forfeiture rate 5.00 % 5.00 % Exercise price (grant-date closing price) per option $ 4.76 $ 5.90 Fair value per option $ 0.39 $ 0.49 For the three June 30, 2019 July 1, 2018, Three-Month Period Ended June 30, 2019 Three-Month Period Ended July 1, 2018 Cost of Marketing & Cost of Marketing & Products Administrative Total Products Administrative Total Options Granted in Fiscal Year Sold Expenses Expense Sold Expenses Expense 2017 $ - $ - $ - $ 6 $ 5 $ 11 2018 4 1 5 7 8 15 2019 3 - 3 - 1 1 2020 - 1 1 - - - Total stock option compensation $ 7 $ 2 $ 9 $ 13 $ 14 $ 27 As of June 30, 2019, $71,000, 1.3 Non-vested Stock Granted to None mployee Directors: Number of Shares Fair Value per Share Grant Date 28,000 $ 5.43 August 8, 2018 28,000 5.50 August 9, 2017 28,000 10.08 August 10, 2016 These shares vest over a two Non-vested Stock Granted to Employees: January 18, 2019, 25,000 January 18, 2021, $5.86 Performance Bonus Plan: may may two three two No 2019 2020 2019 $116,000 2018 2017. Vesting of shares during the three-month periods ended Fiscal Ju ne 30 , 201 9 July 1, 2018 Year Shares Shares Aggregate Taxes Shares Aggregate Taxes Granted Granted Vested Value Remitted Vested Value Remitted 2017 41,205 - $ - $ - 20,601 $ 122,000 $ 39,000 2018 42,250 21,125 109,000 17,000 21,125 124,000 56,000 Total 21,125 $ 109,000 $ 17,000 41,726 $ 246,000 $ 95,000 For the three June 30, 2019 July 1, 2018, Three-Month Period Ended June 30, 2019 Three-Month Period Ended July 1, 2018 Nonemployee Total Nonemployee Total Stock Granted in Fiscal Year Employees Directors Expense Employees Directors Expense 2017 $ - $ - $ - $ - $ 35 $ 35 2018 - 19 19 29 19 48 2019 18 19 37 - - - Total stock grant compensation $ 18 $ 38 $ 56 $ 29 $ 54 $ 83 As of June 30, 2019, $205,000, 10.3 |
Note 8 - Subsequent Events
Note 8 - Subsequent Events | 3 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | N ote 8 – Subsequent Event s As disclosed above in Note 1, July 31, 2019, no March 31, 2013, April 1, 2012 April 3, 2011. $232,000 three June 30, 2019 June 30, 2019 $78,000 three June 30, 2019. The Company has evaluated all other events that have occurred between June 30, 2019 no |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation : not In the opinion of management, the interim unaudited consolidated financial statements contained herein include all adjustments necessary to present fairly the financial position of the Company as of June 30, 2019 three June 30, 2019 not may March 29, 2020. 10 March 31, 2019. |
Fiscal Period, Policy [Policy Text Block] | Fiscal Year: March 31. 2020” “2020” 52 March 29, 2020 2019” “2019” 52 March 31, 2019. |
Reclassification, Policy [Policy Text Block] | Reclassifications: None |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates : |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents: three The Company’s credit facility consists of a revolving line of credit under a financing agreement with The CIT Group/Commercial Services, Inc. (“CIT”), a subsidiary of CIT Group Inc. The Company classifies a negative balance outstanding under this revolving line of credit as cash, as these amounts are legally owed to the Company and are immediately available to be drawn upon by the Company. There are no |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments : |
Advertising Cost [Policy Text Block] | Advertising Cost s : $284,000 $325,000 three June 30, 2019 July 1, 2018, |
Revenue from Contract with Customer [Policy Text Block] | Revenue Recognition: A provision for anticipated returns, which are based upon historical returns and claims, is provided through a reduction of net sales and cost of products sold in the reporting period within which the related sales are recorded. Actual returns and claims experienced in a future period may may The Company recognizes revenue associated with unredeemed store credits and gift certificates at the earlier of their redemption by customers, their expiration or when their likelihood of redemption becomes remote, which is generally two Revenue from sales made directly to consumers is recorded when the shipped products have been received by customers, and excludes sales taxes collected on behalf of governmental entities. Revenue from sales made to retailers is recorded when legal title has been passed to the customer based upon the terms of the customer’s purchase order, the Company’s sales invoice, or other associated relevant documents. Such terms usually stipulate that legal title will pass when the shipped products are no 60 “ Segment and Related Information ” 1. |
Receivable [Policy Text Block] | Allowances Against Accounts Receivable: no Uncollectible Accounts: not |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Credit Concentration: June 30, 2019 $12.5 $541,000. $11.4 $3.4 $14.8 |
Other Accrued Liabilities [Policy Text Block] | Other Accrued Liabilities : $646,000 June 30, 2019. $180,000 June 30, 2019 $16,000 $11,000. |
Segment Reporting, Policy [Policy Text Block] | Segment and Related Information: one three June 30, 2019 July 1, 2018 Three-Month Periods Ended June 30, 2019 July 1, 2018 Bedding, blankets and accessories $ 7,713 $ 8,521 Bibs, bath, developmental toy, feeding, baby care and disposable products 8,229 6,939 Total net sales $ 15,942 $ 15,460 |
Inventory, Policy [Policy Text Block] | Inventory Valuation: first first The determination of the indirect charges and their allocation to the Company's finished goods inventories is complex and requires significant management judgment and estimates. If management made different judgments or utilized different estimates, then differences would result in the valuation of the Company's inventories and in the amount and timing of the Company's cost of products sold and the resulting net income for the reporting period. On a periodic basis, management reviews its inventory quantities on hand for obsolescence, physical deterioration, changes in price levels and the existence of quantities on hand which may not no may not may |
Royalty Payments [Policy Text Block] | Royalty Payments: $881,000 $974,000 three June 30, 2019 July 1, 2018, |
Depreciation, Depletion, and Amortization [Policy Text Block] | Depreciation and Amortization: three eight five twenty |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Valuation of Long-Lived Assets and Identifiable Intangible Assets : may not |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Patent Costs: |
Income Tax, Policy [Policy Text Block] | Provision for Income Taxes: three June 30, 2019 July 1, 2018 24.3% 24.0%, The Company files income tax returns in the many jurisdictions in which it operates, including the U.S., several U.S. states and the People’s Republic of China. The statute of limitations varies by jurisdiction; tax years open to federal or state audit or other adjustment as of June 30, 2019 March 31, 2019, April 1, 2018, April 2, 2017, April 3, 2016, March 29, 2015 March 30, 2014. Management evaluates items of income, deductions and credits reported on the Company’s various federal and state income tax returns filed and recognizes the effect of positions taken on those income tax returns only if those positions are more likely than not 740 10 25, 50% In evaluating the process regarding the calculation of the state portion of its income tax provision, the Company has taken a tax position that reflects opportunities for more favorable state apportionment percentages, which were applied to several prior fiscal years and to succeeding fiscal years. After considering all relevant information, the Company believes that the technical merits of this tax position would more likely than not three June 30, 2019 July 1, 2018 $11,000 $3,000, The Company’s policy is to accrue interest expense and penalties as appropriate on estimated unrecognized tax liabilities as a charge to interest expense in the Company’s consolidated statements of income. During the three June 30, 2019 July 1, 2018, $26,000 $25,000, No In December 2016, March 30, 2014, March 31, 2013, April 1, 2012 April 3, 2011. On July 31, 2019, no March 31, 2013, April 1, 2012 April 3, 2011. $232,000 three June 30, 2019 June 30, 2019 $78,000 three June 30, 2019. As of July 31, 2019, March 30, 2014 not one not In connection with the vesting of non-vested stock, the Company recorded a discrete income tax shortfall of $2,000 three June 30, 2019, $5,000 three July 1, 2018. The ETR on continuing operations and the discrete income tax charges and benefits set forth above resulted in an overall provision for income taxes of 5.0% 23.3% three June 30, 2019 July 1, 2018, |
Earnings Per Share, Policy [Policy Text Block] | E arnings Per Share: |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently-Issued Accounting Standards : June 2016, No. 2016 13, Financial Instruments – Credit Losses (Topic 326 not No. 2016 13 first December 15, 2019. may first December 15, 2018. No. 2016 13 March 30, 2020. not not The Company has determined that all other ASUs which had become effective as of June 30, 2019, not |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three-Month Periods Ended June 30, 2019 July 1, 2018 Bedding, blankets and accessories $ 7,713 $ 8,521 Bibs, bath, developmental toy, feeding, baby care and disposable products 8,229 6,939 Total net sales $ 15,942 $ 15,460 |
Note 3 - Other Intangible Ass_2
Note 3 - Other Intangible Assets (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | Amortization Expense Gross Amount Accumulated Amortization Three-Month Periods Ended June 30, March 31, June 30, March 31, June 30, July 1, 2019 2019 2019 2019 2019 2018 Tradename and trademarks $ 3,667 $ 3,667 $ 1,562 $ 1,501 $ 61 $ 48 Developed technology 1,100 1,100 211 183 28 27 Non-compete covenants 458 458 220 200 20 20 Patents 1,601 1,601 808 781 27 27 Customer relationships 7,374 7,374 5,181 5,103 78 78 Total other intangible assets $ 14,200 $ 14,200 $ 7,982 $ 7,768 $ 214 $ 200 Classification within the accompanying unaudited condensed consolidated statements of income: Cost of products sold $ 2 $ 2 Marketing and administrative expenses 212 198 Total amortization expense $ 214 $ 200 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2019 March 31, 2019 Raw Materials $ 614 $ 617 Work in Process 35 56 Finished Goods 19,800 18,861 Total inventory $ 20,449 $ 19,534 |
Note 6 - Leases (Tables)
Note 6 - Leases (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Cost of products sold $ 283 Marketing and administrative expenses 29 Total operating lease costs $ 312 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Fiscal Year 2020 $ 1,086 2021 546 2022 100 2023 10 Total undiscounted operating lease payments 1,742 Imputed interest (61 ) Total operating lease liabilities $ 1,681 |
Lessee, Operating Lease, Disclosure [Table Text Block] | Fiscal Year 2020 $ 1,406 2021 497 2022 42 Total $ 1,945 |
Note 7 - Stock-based Compensa_2
Note 7 - Stock-based Compensation (Tables) | 3 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Three-Month Periods Ended June 30, 2019 July 1, 2018 Weighted- Weighted- Average Number of Average Number of Exercise Options Exercise Options Price Outstanding Price Outstanding Outstanding at Beginning of Period $ 7.45 457,500 $ 7.93 395,000 Granted 4.76 125,000 5.90 110,000 Forfeited 7.07 (55,000 ) - - Outstanding at End of Period 6.85 527,500 7.48 505,000 Exercisable at End of Period 7.72 352,500 8.15 315,000 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Three-Month Periods Ended June 30, 2019 July 1, 2018 Number of options issued 125,000 110,000 Grant date June 13, 2019 June 13, 2018 Dividend yield 6.72 % 5.42 % Expected volatility 25.00 % 25.00 % Risk free interest rate 1.81 % 2.78 % Contractual term (years) 10.00 10.00 Expected term (years) 4.00 4.00 Forfeiture rate 5.00 % 5.00 % Exercise price (grant-date closing price) per option $ 4.76 $ 5.90 Fair value per option $ 0.39 $ 0.49 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three-Month Period Ended June 30, 2019 Three-Month Period Ended July 1, 2018 Cost of Marketing & Cost of Marketing & Products Administrative Total Products Administrative Total Options Granted in Fiscal Year Sold Expenses Expense Sold Expenses Expense 2017 $ - $ - $ - $ 6 $ 5 $ 11 2018 4 1 5 7 8 15 2019 3 - 3 - 1 1 2020 - 1 1 - - - Total stock option compensation $ 7 $ 2 $ 9 $ 13 $ 14 $ 27 |
Share-based Payment Arrangement, Nonemployee Director Award Plan, Activity [Table Text Block] | Number of Shares Fair Value per Share Grant Date 28,000 $ 5.43 August 8, 2018 28,000 5.50 August 9, 2017 28,000 10.08 August 10, 2016 |
Schedule of Nonvested Share Activity [Table Text Block] | Three-Month Period Ended June 30, 2019 Three-Month Period Ended July 1, 2018 Nonemployee Total Nonemployee Total Stock Granted in Fiscal Year Employees Directors Expense Employees Directors Expense 2017 $ - $ - $ - $ - $ 35 $ 35 2018 - 19 19 29 19 48 2019 18 19 37 - - - Total stock grant compensation $ 18 $ 38 $ 56 $ 29 $ 54 $ 83 |
Performance Shares [Member] | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Vesting of shares during the three-month periods ended Fiscal Ju ne 30 , 201 9 July 1, 2018 Year Shares Shares Aggregate Taxes Shares Aggregate Taxes Granted Granted Vested Value Remitted Vested Value Remitted 2017 41,205 - $ - $ - 20,601 $ 122,000 $ 39,000 2018 42,250 21,125 109,000 17,000 21,125 124,000 56,000 Total 21,125 $ 109,000 $ 17,000 41,726 $ 246,000 $ 95,000 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jul. 01, 2018USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | |
Accounts Receivable, after Allowance for Credit Loss, Current, Total | $ 12,500,000 | $ 12,500,000 | ||
Accounts Receivable, Allowance for Credit Loss, Current | 541,000 | 541,000 | ||
Other Accrued Liabilities, Current | 646,000 | $ 646,000 | $ 483,000 | |
Number of Operating Segments | 1 | |||
Cost of Goods and Services Sold, Total | $ 11,391,000 | $ 11,332,000 | ||
Estimated Effective Income Tax Rate Reconciliation, Continuing Operations, Before Discrete Changes, Percent | 24.30% | 24.00% | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | $ 11,000 | $ 3,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense, Total | 26,000 | 25,000 | ||
Tax Adjustments, Settlements, and Unusual Provisions | (232,000) | |||
Interest Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | (78,000) | |||
Income Tax Expense (Benefit), Reserve for Unrecognized Tax Benefits, Net Discrete Charge | $ 2,000 | $ (5,000) | ||
Estimated Effective Income Tax Rate Reconciliation, Percent | 5.00% | 23.30% | ||
Minimum [Member] | ||||
Property, Plant and Equipment, Useful Life | 3 years | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | |||
Maximum [Member] | ||||
Property, Plant and Equipment, Useful Life | 8 years | |||
Finite-Lived Intangible Asset, Useful Life | 20 years | |||
Royalty [Member] | ||||
Cost of Goods and Services Sold, Total | $ 881,000 | $ 974,000 | ||
Other Accrued Liabilities [Member] | Up-front Payment Arrangement [Member] | ||||
Deferred Revenue, Current, Total | 180,000 | $ 180,000 | ||
Other Accrued Liabilities [Member] | Customer Returns [Member] | ||||
Deferred Revenue, Current, Total | 16,000 | 16,000 | ||
Other Accrued Liabilities [Member] | Store Credits and Gift Certificates [Member] | ||||
Deferred Revenue, Current, Total | 11,000 | 11,000 | ||
Receivable Due from Factor [Member] | ||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 11,400,000 | 11,400,000 | ||
Negative Balance Outstanding Under Revolving Line of Credit [Member] | ||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 3,400,000 | 3,400,000 | ||
Receivable from Factor, and Negative Balance on Revolving Line of Credit [Member] | ||||
Accounts Receivable, after Allowance for Credit Loss, Current, Total | 14,800,000 | $ 14,800,000 | ||
Selling, General and Administrative Expenses [Member] | ||||
Advertising Expense | $ 284,000 | $ 325,000 |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Segment and Related Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Net sales | $ 15,942 | $ 15,460 |
Bedding, Blankets, And Accessories [Member] | ||
Net sales | 7,713 | 8,521 |
Bibs, Bath, And Disposable Products [Member] | ||
Net sales | $ 8,229 | $ 6,939 |
Note 2 - Goodwill (Details Text
Note 2 - Goodwill (Details Textual) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019USD ($) | Apr. 01, 2019USD ($) | Mar. 31, 2019USD ($) | |
Number of Reportable Segments | 2 | ||
Goodwill, Gross | $ 30,000 | $ 30,000 | |
Goodwill, Impaired, Accumulated Impairment Loss | 22,900 | $ 0 | 22,900 |
Goodwill, Ending Balance | $ 7,125 | $ 7,125 |
Note 3 - Other Intangible Ass_3
Note 3 - Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Mar. 31, 2019 | |
Finite-lived intangible assets, gross amount | $ 14,200 | $ 14,200 | |
Finite-lived intangible assets, accumulated amortization | 7,982 | 7,768 | |
Amortization expense | 214 | $ 200 | |
Cost of Sales [Member] | |||
Amortization expense | 2 | 2 | |
Selling, General and Administrative Expenses [Member] | |||
Amortization expense | 212 | 198 | |
Trademarks and Trade Names [Member] | |||
Finite-lived intangible assets, gross amount | 3,667 | 3,667 | |
Finite-lived intangible assets, accumulated amortization | 1,562 | 1,501 | |
Amortization expense | 61 | 48 | |
Developed Technology [Member] | |||
Finite-lived intangible assets, gross amount | 1,100 | 1,100 | |
Finite-lived intangible assets, accumulated amortization | 211 | 183 | |
Amortization expense | 28 | 27 | |
Noncompete Agreements [Member] | |||
Finite-lived intangible assets, gross amount | 458 | 458 | |
Finite-lived intangible assets, accumulated amortization | 220 | 200 | |
Amortization expense | 20 | 20 | |
Patents [Member] | |||
Finite-lived intangible assets, gross amount | 1,601 | 1,601 | |
Finite-lived intangible assets, accumulated amortization | 808 | 781 | |
Amortization expense | 27 | 27 | |
Customer Relationships [Member] | |||
Finite-lived intangible assets, gross amount | 7,374 | 7,374 | |
Finite-lived intangible assets, accumulated amortization | 5,181 | $ 5,103 | |
Amortization expense | $ 78 | $ 78 |
Note 4 - Inventories - Componen
Note 4 - Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 |
Raw Materials | $ 614 | $ 617 |
Work in Process | 35 | 56 |
Finished Goods | 19,800 | 18,861 |
Total inventory | $ 20,449 | $ 19,534 |
Note 5 - Financing Arrangemen_2
Note 5 - Financing Arrangements (Details Textual) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Jul. 01, 2018 | Mar. 31, 2019 | |
Selling, General and Administrative Expense, Total | $ 3,452,000 | $ 3,685,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 19,200,000 | $ 19,400,000 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 26,000,000 | ||
Long-term Line of Credit, Total | 0 | 4,500,000 | |
Letters of Credit Outstanding, Amount | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | Prime Rate [Member] | |||
Debt Instrument Basis Spread Below Variable Rate | 0.50% | ||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.50% | ||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.18% | ||
Letter of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | ||
Factoring Fees [Member] | |||
Selling, General and Administrative Expense, Total | $ 51,000 | $ 56,000 |
Note 6 - Leases (Details Textua
Note 6 - Leases (Details Textual) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Apr. 01, 2019 | Mar. 31, 2019 | |
Operating Lease, Right-of-Use Asset | $ 1,600,000 | $ 1,900,000 | |
Operating Lease, Liability, Total | 1,681,000 | 1,900,000 | |
Reclassification from Deferred Rent to Operating Lease, Right-of-Use Asset | $ 99,000 | ||
Operating Lease, Payments | $ 352,000 | ||
Operating Lease, Weighted Average Remaining Lease Term | 1 year 150 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.59% |
Note 6 - Leases - Classificatio
Note 6 - Leases - Classification of Operating Lease Costs in Consolidated Statements of Income (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Operating Lease Costs | $ 312 |
Cost of Sales [Member] | |
Operating Lease Costs | 283 |
Selling, General and Administrative Expenses [Member] | |
Operating Lease Costs | $ 29 |
Note 6 - Leases - Maturities of
Note 6 - Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) | Jun. 30, 2019 | Apr. 01, 2019 |
2020 | $ 1,086,000 | |
2021 | 546,000 | |
2022 | 100,000 | |
2023 | 10,000 | |
Total undiscounted operating lease payments | 1,742,000 | |
Imputed interest | (61,000) | |
Total operating lease liabilities | $ 1,681,000 | $ 1,900,000 |
Note 6 - Leases - Minimum Guara
Note 6 - Leases - Minimum Guaranteed Rental Payments (Details) $ in Thousands | Mar. 31, 2019USD ($) |
2020 | $ 1,406 |
2021 | 497 |
2022 | 42 |
Total | $ 1,945 |
Note 7 - Stock-based Compensa_3
Note 7 - Stock-based Compensation (Details Textual) - USD ($) | Jan. 18, 2019 | Jun. 30, 2019 | Jul. 01, 2018 | Mar. 31, 2019 |
Common Stock, Capital Shares Reserved for Future Issuance | 486,000 | |||
Share-based Payment Arrangement, Expense | $ 65,000 | $ 110,000 | ||
Share-based Payment Arrangement, Amount Capitalized | 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 309 days | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 205,000 | |||
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Payment Arrangement, Expense | $ 9,000 | $ 27,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | 2 years | ||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 71,000 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 109 days | |||
Share-based Payment Arrangement, Option [Member] | Non Employee Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||
Restricted Stock [Member] | Subsidiary CEO And President [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 25,000 | |||
Share Base Compensation Arrangement by Share Based Payment Award Equity Instrument Other Than Options Grants in Period Total Grant Date Fair Value | $ 5.86 | |||
Performance Shares [Member] | ||||
Share-based Payment Arrangement, Expense | $ 116,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 2 years | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 3 years | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | ||
The 2014 Omnibus Equity Compensation Plan [Member] | Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Note 7 - Stock-based Compensa_4
Note 7 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Outstanding, Weighted-average exercise price, beginning balance (in dollars per share) | $ 7.45 | $ 7.93 |
Outstanding, Shares, beginning balance (in shares) | 457,500 | 395,000 |
Granted, Weighted-average exercise price (in dollars per share) | $ 4.76 | $ 5.90 |
Number of options issued (in shares) | 125,000 | 110,000 |
Forfeited, Weighted-average exercise price (in dollars per share) | $ 7.07 | |
Forfeited, Shares (in shares) | (55,000) | |
Outstanding, Weighted-average exercise price, ending balance (in dollars per share) | $ 6.85 | $ 7.48 |
Outstanding, Shares, ending balance (in shares) | 527,500 | 505,000 |
Exercisable, Weighted-average exercise price (in dollars per share) | $ 7.72 | $ 8.15 |
Exercisable, Shares (in shares) | 352,500 | 315,000 |
Note 7 - Stock-based Compensa_5
Note 7 - Stock-based Compensation - Estimated Fair Value of Stock Options Assumptions (Details) - $ / shares | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Number of options issued (in shares) | 125,000 | 110,000 |
June 13, 2019 [Member] | ||
Number of options issued (in shares) | 125,000 | |
Grant date | Jun. 13, 2019 | |
Dividend yield | 6.72% | |
Expected volatility | 25.00% | |
Risk free interest rate | 1.81% | |
Contractual term (years) (Year) | 10 years | |
Expected term (years) (Year) | 4 years | |
Forfeiture rate | 5.00% | |
Exercise price (grant-date closing price) per option (in dollars per share) | $ 4.76 | |
Fair value per option (in dollars per share) | $ 0.39 | |
June 13, 2018 [Member] | ||
Number of options issued (in shares) | 110,000 | |
Grant date | Jun. 13, 2018 | |
Dividend yield | 5.42% | |
Expected volatility | 25.00% | |
Risk free interest rate | 2.78% | |
Contractual term (years) (Year) | 10 years | |
Expected term (years) (Year) | 4 years | |
Forfeiture rate | 5.00% | |
Exercise price (grant-date closing price) per option (in dollars per share) | $ 5.90 | |
Fair value per option (in dollars per share) | $ 0.49 |
Note 7 - Stock-based Compensa_6
Note 7 - Stock-based Compensation - Stock Option Compensation (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Allocated share-based compensation | $ 65,000 | $ 110,000 |
Share-based Payment Arrangement, Option [Member] | ||
Allocated share-based compensation | 9,000 | 27,000 |
Share-based Payment Arrangement, Option [Member] | Cost of Sales [Member] | ||
Allocated share-based compensation | 7,000 | 13,000 |
Share-based Payment Arrangement, Option [Member] | Marketing and Administrative Expenses [Member] | ||
Allocated share-based compensation | 2,000 | 14,000 |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2017 [Member] | ||
Allocated share-based compensation | 11,000 | |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2017 [Member] | Cost of Sales [Member] | ||
Allocated share-based compensation | 6,000 | |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2017 [Member] | Marketing and Administrative Expenses [Member] | ||
Allocated share-based compensation | 5,000 | |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2018 [Member] | ||
Allocated share-based compensation | 5,000 | 15,000 |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2018 [Member] | Cost of Sales [Member] | ||
Allocated share-based compensation | 4,000 | 7,000 |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2018 [Member] | Marketing and Administrative Expenses [Member] | ||
Allocated share-based compensation | 1,000 | 8,000 |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2019 [Member] | ||
Allocated share-based compensation | 3,000 | 1,000 |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2019 [Member] | Cost of Sales [Member] | ||
Allocated share-based compensation | 3,000 | |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2019 [Member] | Marketing and Administrative Expenses [Member] | ||
Allocated share-based compensation | 1,000 | |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2020 [Member] | ||
Allocated share-based compensation | 1,000 | |
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2020 [Member] | Cost of Sales [Member] | ||
Allocated share-based compensation | ||
Share-based Payment Arrangement, Option [Member] | Fiscal Year 2020 [Member] | Marketing and Administrative Expenses [Member] | ||
Allocated share-based compensation | $ 1,000 |
Note 7 - Stock-based Compensa_7
Note 7 - Stock-based Compensation - Non-vested Stock to Directors (Details) - Non Employee Directors [Member] - Non-vested Stock Grants [Member] | 3 Months Ended |
Jun. 30, 2019$ / sharesshares | |
August 8, 2018 [Member] | |
Fair Value Per Share (in dollars per share) | $ / shares | $ 5.43 |
Number of Shares (in shares) | shares | 28,000 |
August 9 2017 [Member] | |
Fair Value Per Share (in dollars per share) | $ / shares | $ 5.50 |
Number of Shares (in shares) | shares | 28,000 |
August 10, 2016 [Member] | |
Fair Value Per Share (in dollars per share) | $ / shares | $ 10.08 |
Number of Shares (in shares) | shares | 28,000 |
Note 7 - Stock-based Compensa_8
Note 7 - Stock-based Compensation - Grants and Compensation Expense in Connection With the Performance Bonus Plan (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | Mar. 31, 2019 | |
Shares Vested (in shares) | 21,125 | 41,726 | |
Shares Vested, Aggregate Value | $ 109,000 | $ 246,000 | |
Shares Vested, Taxes Remitted | $ 17,000 | $ 95,000 | |
Performance Shares [Member] | |||
Number of Shares (in shares) | 0 | 0 | |
Performance Shares [Member] | Earned in Fiscal Year 2016, Granted in Fiscal Year 2017 [Member] | |||
Number of Shares (in shares) | 41,205 | ||
Shares Vested (in shares) | 20,601 | ||
Shares Vested, Aggregate Value | $ 122,000 | ||
Shares Vested, Taxes Remitted | $ 39,000 | ||
Performance Shares [Member] | Earned in Fiscal Year 2017, Granted in Fiscal Year 2018 [Member] | |||
Number of Shares (in shares) | 42,250 | ||
Shares Vested (in shares) | 21,125 | 21,125 | |
Shares Vested, Aggregate Value | $ 109,000 | $ 124,000 | |
Shares Vested, Taxes Remitted | $ 17,000 | $ 56,000 |
Note 7 - Stock-based Compensa_9
Note 7 - Stock-based Compensation - Compensation Expense Associated with Non-vested Stock Grants (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2019 | Jul. 01, 2018 | |
Allocated share-based compensation | $ 65,000 | $ 110,000 |
Selling, General and Administrative Expenses [Member] | Non-vested Stock Grants [Member] | ||
Allocated share-based compensation | 56,000 | 83,000 |
Selling, General and Administrative Expenses [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2017 [Member] | ||
Allocated share-based compensation | 35,000 | |
Selling, General and Administrative Expenses [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2018 [Member] | ||
Allocated share-based compensation | 19,000 | 48,000 |
Selling, General and Administrative Expenses [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2019 [Member] | ||
Allocated share-based compensation | 37,000 | |
Selling, General and Administrative Expenses [Member] | Employee [Member] | Non-vested Stock Grants [Member] | ||
Allocated share-based compensation | 18,000 | 29,000 |
Selling, General and Administrative Expenses [Member] | Employee [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2017 [Member] | ||
Allocated share-based compensation | ||
Selling, General and Administrative Expenses [Member] | Employee [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2018 [Member] | ||
Allocated share-based compensation | 29,000 | |
Selling, General and Administrative Expenses [Member] | Employee [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2019 [Member] | ||
Allocated share-based compensation | 18,000 | |
Selling, General and Administrative Expenses [Member] | Non Employee Directors [Member] | Non-vested Stock Grants [Member] | ||
Allocated share-based compensation | 38,000 | 54,000 |
Selling, General and Administrative Expenses [Member] | Non Employee Directors [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2017 [Member] | ||
Allocated share-based compensation | 35,000 | |
Selling, General and Administrative Expenses [Member] | Non Employee Directors [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2018 [Member] | ||
Allocated share-based compensation | 19,000 | 19,000 |
Selling, General and Administrative Expenses [Member] | Non Employee Directors [Member] | Non-vested Stock Grants [Member] | Fiscal Year 2019 [Member] | ||
Allocated share-based compensation | $ 19,000 |
Note 8 - Subsequent Events (Det
Note 8 - Subsequent Events (Details Textual) | 3 Months Ended |
Jun. 30, 2019USD ($) | |
Tax Adjustments, Settlements, and Unusual Provisions | $ (232,000) |
Interest Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ (78,000) |